Ai16z [AI16Z] stands out as one of the prominent tokens in the realm of Artificial Intelligence (AI) Agents in today’s market. Recent trends, however, have shown it to be among the most negatively impacted by the recent downturn in Bitcoin’s value, which subsequently dragged down the entire cryptocurrency market.
Presently, the sentiment surrounding AI16Z appears strongly bearish in the short term. There are indications of a potential drop below the crucial $1 support level.
Selling Pressure Evident in Price Movements
An analysis of the 2-hour chart for the AI token reveals a clear bearish bias in the short term. The market’s structure in this specific timeframe is notably bearish. Moreover, the price action has resulted in a new low below $1.26, reinforcing the dominance of selling pressure in the market.
Prior to hitting this new low, the token witnessed a bounce to $1.72 earlier in the month. By analyzing this bounce, Fibonacci levels and extensions were utilized to identify potential downside targets of $1.16 and $0.98.
For the past three days, the CMF has consistently remained below -0.05, signaling a high level of selling pressure and a significant amount of capital exiting the market. The Awesome Oscillator has also dipped below zero, confirming the presence of intense selling pressure.
Signs of Rebound in Liquidation Heatmap
Reviewing AI16Z’s liquidation heatmap for the previous week, it pinpointed the $1.4 and $1.18 levels as key magnetic zones. The $1.18 level, being closer to the current market price, appears to be the more plausible short-term target.
These observations align with the bearish indications observed in the technical analysis of the 2-hour timeframe. In the event of a rebound in BTC’s price, ai16z might encounter a bearish reversal within the $1.4-$1.5 range. However, surpassing this level would not necessarily signal a strong bullish trend. To shift the structure towards a bullish stance, the token must surpass the lower high at $1.72.
Disclaimer: The views expressed above are solely the author’s opinion and do not constitute financial, investment, or trading advice.